The US Postal Service has announced a net loss of US$2.5bn for the third quarter of 2024, an increase of US$800m compared to the same quarter in 2023.
According to the postal operator, its controllable loss was US$1.1bn for the quarter, compared to US$860m for the same quarter last year, as expenses related to network modernization and deferred maintenance and continued inflation increased controllable operating expenses. Uncontrollable losses relating to pension liabilities and workers compensation were US$1.4bn.
Revenue rise
The Q3 2024 fiscal report showed a total operating revenue of US$18.8bn, a rise of 1% year-on-year, thanks to an increase in revenue from the post’s shipping and packages, First Class mail and marketing mail sectors.
Shipping and packages revenue increased by 2.4% year-on-year to US$182m with 46 million items handled in Q3 2024. Meanwhile, First Class mail volumes declined by 3.4% year-on-year, but revenues rose 2.1% to US$125m. Marketing mail revenue increased by 3.1% on a volume decline of 43 million pieces (-0.3%), compared to the same quarter last year.
“We are making solid progress in generating a sustained revenue growth trajectory in our mailing and shipping businesses, which is validation of the product and pricing strategies and network capabilities enabled by our Delivering for America plan,” said USPS Postmaster General Louis DeJoy.
“We continue transforming and modernizing our processing, transportation and delivery networks, which will enable the Postal Service to operate more efficiently and effectively and at lower cost. Despite inflationary headwinds impacting our costs, we remain committed to finding a path to return the Postal Service to long-term financial sustainability.”
Operating expenses
Total generally accepted accounting principles (GAAP) operating expenses were US$21.4bn for the quarter, an increase of $901m (4.4%), compared to Q3 2023. The overall increase in operating expenses was primarily due to inflationary impacts on compensation costs, retirement costs and other operating costs, partially offset by lower transportation costs.
“We reduced work hours by approximately one million hours reflecting a continuing three-year trend of work hour reductions during the implementation of the Delivering for America plan. This reduction, in conjunction with lower transportation expenses for the quarter, reflects continued progress under the plan,” said chief financial officer Joseph Corbett.
For the full Q3 2024 results, click here.